Subprime Market Problems Costing Almost $1 Trillion to Thailand

Subprime market problems in the U.S. are causing damage to markets around the world. Thailand estimated the problems have cost the county $1 trillion and might cause repercussions in the property business until the middle of next year, according to Thai News Service.

The subprime mortgage problems have caused huge damage to the U.S. property market, but have not reached a crisis yet, said Paritat Leung-uthai, president of SCB Quant Asset Management, at a seminar.

The damages might surge to $20 trillion in Thailand, he said. It would make the Thai stock market fluctuate as global liquidity would tighten and interest rates would rise.

The problems, if left unfixed, could escalate and affect middle class people. It could make the U.S. economy sluggish for the next 1-2 years, he said.

Additionally, Thai exports would be affected also because the U.S. economy, which is a major export destination, could experience a slowdown, experts said.

The staff of Money Management Executive ("MME") has prepared these capsule summaries based on reports published by the news sources to which they are attributed. Those news sources are not associated with MME, and have not prepared, sponsored, endorsed, or approved these summaries.